News FROM IIADA - Iowa Independent Automobile Dealers ...
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News FROM IIADA
September 2020
Administrative Office.
P.O. Box 356 IIADA ADMINISTRATIVE OFFICE
West Branch, IA 52358
Contact information: Todd Thein, Executive Director
Phone 319-643-5403
Phone: Office (319) 643-5403, Cell (319) 521-7333.
Fax: 319-643-5403
E-Mail: iiada2@netins.net
Email:iiada2@netins.net
Mailing Address: P.O. Box 356, West Branch, Iowa 52358
Auction News
Dealer’s Choice AA
www.dcaa.com
Plaza Auto Auction
www.plazaaa.com
MISSION STATEMENT
Tri-State AA – Cuba City
The mission of the National Independent Automobile Dealers Asso-
www.tsaaonline.com ciation, the only national not-for-profit organization representing
Manheim Omaha AA the independent motor vehicle industry, is to promote, educate and
www.manheim.com advance the independent motor vehicle dealer by:
Adesa Des Moines Accumulating, processing and disseminating information relative to
www.adesa.com
the motor vehicle industry;
Manheim-Minneapolis-MAA
www.manheim.com Developing, compiling and providing to the consumer, information
Manheim Northstar
which will promote a better understanding of the independent mo-
www.manheim.com tor vehicle dealers' place in the economy;
Des Moines Auto Auction Providing relevant information to regulatory and lawmaking bodies
www.dsmaa.com
so that they may have a better understanding of the possible
effects of proposed laws, rules and regulations on the consumer
SUPPORT FOR THE MIDWEST
AUTO AUCTIONS IS GREATLY and the motor vehicle industry;
APPRECIATED. :
Assisting in the promotion and organization of local, state or re-
gional independent motor vehicle dealer associations; and
Anticipating, recognizing and responding to current and future is-
sues and needs of the independent motor vehicle industry and the
consumer.
MEMBERSHIP DUES NOW PAYABLE BY CREDIT/DEBIT CARD:
You can pay IIADA Membership Dues on-line at www.iowaiada.com. Click
the “MEMBERSHIP DUES” tab. This will direct you to the secured site to pay
your membership dues. Just another option for the IIADA members.
DEALER EDUCATION CLASSES FOR October 2020
With the state opening up to 50% capacity the Community Colleges that pro-
vide venues for the 5 hour dealer education classes have gotten creative. Sev-
eral colleges will offer virtual classes while others will offer traditional classes
with a limited number of seats available. Where possible, select Community
Colleges will offer a combination of live and virtual. Check with your Commu-
Auction News
nity College for local options.
Adesa – Sioux Falls
www.adesa.com. Auto Dealer: 5 Hour Renewal Courses October 2020 Classes
CHECK ALL DEALER EDUCATION TIMES AND LOCATIONS AT
Manheim Kansas City
www.manheim.com www.iowaiada.com (Dealer Education Tab)
Greater Rockford AA
October 1, 2020 - Thursday Northeast Iowa Community College
www.graa.net Calmar 101 12:00PM - 5:00PM
Quad City Auto Auction
October 2, 2020 - Friday Northeast Iowa Community College
www.qcaa.com Cresco 102 8:00AM - 1:00PM
Lincoln Auto Auction
October 15, 2020 - Thursday Iowa Lakes Community College
www.lincolnautoauction.com Emmetsburg 102 12:00PM - 5:00PM
October 15, 2020 - Thursday Southeastern Community College
Burlington Live and ZOOM 102 12:00PM - 5:00PM
IIADA EVENTS: October 16, 2020 - Friday Iowa Lakes Community College
2020 Annual Meeting
Emmetsburg 101 8:00AM - 1:00PM
TBA - 2020
October 16, 2020 - Friday Southeastern Community College
Burlington Live and ZOOM 101 8:00AM - 1:00PM
NIADA EVENTS: October 21, 2020 - Wednesday Hawkeye Community College
June 15-18, 2020
NIADA Convention
ZOOM 101 8:00AM - 1:00PM
Las Vegas – MGM Grand October 23, 2020 - Friday Northwest Iowa Community College
Sheldon 101 12:00PM - 5:00PM
October 28, 2020 - Wednesday Kirkwood Community College
ZOOM 101 8:00AM - 1:00PM
KEEP US INFORMED
DON’T FORGET TO LET October 29, 2020 - Thursday Indian Hills Community College
IIADA KNOW IF YOUR
Ottumwa Live and ZOOM 101 12:00PM - 5:00PM
E-MAIL, ADDRESS OR
PHONE NUMBER CHANGES October 30, 2020 - Friday Indian Hills Community College
Ottumwa Live and ZOOM 102 8:00AM - 1:00PM
Approved Benefit Loose Lips Sink Ships — and Dealerships
Providers
www.iowaiada.com By Thomas B. Hudson*
Sometimes dealership sales folks are dishonest crooks. Rare-
Access Systems ly, we hope.
Advanced Business Products
Other times, they have not been trained properly to play their
AutoJini.com
parts in the reasonably complicated sales and financing trans-
Auto- Owners Insurance actions that are common at dealerships. In either case, sales-
people — and F&I people too, for that matter — can create
Associations Marketing Group, Inc.
mischief when they make statements to car buyers that they
Automotive Finance Corporation – AFC. shouldn't make.
Citizens Community Credit Union
Here's an example of the sort of trouble that can result from a
CU Direct (CUDL) few ill-chosen words.
The Cyclone Agency.
Yahaira Munoz bought a used vehicle from JLO Automotive,
Erikson Solutions Services, LLC Inc. Munoz alleged that, during the purchase transaction, the
Frazer-Dealer Management Software.
dealership's salesperson told her that GAP insurance was
mandatory as part of the dealership's "low income program." If
First Interstate Bank
you know the requirements of the federal Truth in Lending Act
Follow-Up Plus and Regulation Z, you'll know that when GAP is required, the
cost must be included in the finance charge and used to com-
Globe Acceptance, Inc.
pute the APR in the credit transaction.
Greater Iowa Credit Union
Munoz claimed that although she was not interested in buying
Innovative Dealer Services
GAP insurance, she bought it because the salesperson told
Preferred Warranties, Inc. her it was mandatory. The salesperson also allegedly required
ProSource Finance.com
Munoz to provide her checking account information so the fi-
nance company could make automatic withdrawals from her
Veridian Credit Union
bank account.
Reynolds & Reynolds Inc.
Munoz later sued JLO for violating TILA, the Electronic Fund
S & C Automotive, Inc.
Transfer Act, the Fair Credit Reporting Act, and the Connecticut
U Drive Acceptance Corp. Unfair Trade Practices Act. Munoz moved for a default judg-
ment.
Green State Credit Union
Wilson Distributor ServiceThe federal trial court found that the retail installment contract Munoz signed con- tained language stating that GAP protection was "not required to obtain credit" and that GAP protection would not be provided unless the consumer signed for it, which Munoz did. The court found that this language fulfilled TILA's requirement of a clear and conspic- uous disclosure. The RIC also satisfied the three requirements for excluding GAP in- surance from the finance charge: it disclosed that GAP insurance was not required, it disclosed the fee for the initial term of coverage, and Munoz signed the affirmative request for coverage right beneath the disclosures. The court rejected Munoz's argument that the salesperson's oral statement that GAP insurance was required to obtain credit negated the written disclosure and thus creat- ed TILA liability. Therefore, because the GAP insurance charge satisfied the criteria to be excluded from the finance charge, and because Munoz's TILA claim was prem- ised on the notion that the GAP charge was a finance charge, the court denied her motion for a default judgment on her TILA claim. However, the court granted Munoz's motion for a default judgment with respect to her EFTA claim alleging that JLO required her to allow the finance company to debit her checking account automatically as a condition of financing. Finally, the court declined to exercise supplemental jurisdiction over the CUTPA claim. You'll need to read this opinion carefully. The dealership did not get off scot-free. It escaped liability for a federal TILA claim but not for the federal EFTA claim. Note that the federal court declined to adjudicate the state unfair trade practices act claim, which could be brought in state court or serve as the basis for a complaint to the at- torney general or to dealership regulators. That should tell you that you need to make sure that customer-facing dealership rep- resentatives know what they can and cannot say, and what they can and cannot re- quire, when dealing with car buyers. If you aren't training your folks on these details — "coachin' 'em up," as Steve Spurrier used to say — you're looking for trouble. Munoz v. JLO Automotive, Inc., 2020 U.S. Dist. LEXIS 136552 (D. Conn. July 31, 2020). *Thomas B. Hudson was a founding partner of Hudson Cook, LLP, and is now of counsel in the firm's Maryland office and the Senior Editor of Spot Delivery. Tom can be reached at 410.865.5411 or by email at thudson@hudco.com.
Iowa Promo Code: IA2020 Direct Link: https://na.eventscloud.com/561641?discountcode=IA2020 Vanity URL: iowa.niadaconvention.com
Approved Benefit
Providers
www.iowaiada.com
Access Systems
Advanced Business Products
AutoJini.com
Auto- Owners Insurance
Associations Marketing Group, Inc.
Automotive Finance Corporation – AFC.
Citizens Community Credit Union
CU Direct (CUDL)
The Cyclone Agency.
Erikson Solutions Services, LLC
Frazer-Dealer Management Software.
First Interstate Bank
Follow-Up Plus
Globe Acceptance, Inc.
Greater Iowa Credit Union
Innovative Dealer Services
Preferred Warranties, Inc.
ProSource Finance.com
Veridian Credit Union
Reynolds & Reynolds Inc.
S & C Automotive, Inc.
U Drive Acceptance Corp.
Green State Credit Union
Wilson Distributor ServiceYou can also read
